Snap shares were trading higher late Thursday after the social-networking service posted better-than-forecast results for the March quarter. The strong results triggered gains for stocks across the social-media sector.
Shares of Snap (ticker: SNAP) jumped 6.3%, to $60.63. Pinterest shares were up 3% and Twitter shares were up 2%.
Snap reported revenues of $770 million, up 66% from a year ago, and above its guidance range of $720 million to $740 million. The company had a net loss of $287 million. On an adjusted Ebitda basis—earnings before interest, taxes, depreciation, and amortization—Snap lost $2 million, well ahead of the company’s forecast of a loss of $50 million to $70 million. The company had $131 million in free cash flow—the company’s first quarter of positive free cash flow as a public company.
Snap had 280 million daily active users, up 22% from a year ago.
For the June quarter, Snap is projecting revenue of $820 million to $840 million, which compares with the Street consensus forecast of $826 million. At the midpoint of the range, that would be up 83% from the year-ago quarter’s $454 million. Snap sees adjusted Ebitda ranging from a loss of $20 million to break even.
“We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive Free Cash Flow for the first time in Snap’s history as a public company,” CEO Evan Spiegel said in a statement.
Write to Eric J. Savitz at [email protected]
